It’s hard to be a fan of gold and silver, nowadays. Both are standing 2013 at the lowest position in the table. Within but 2 years, they turned from being highflyers to become underperformers, from everybody’s darlings to black sheep. Even though the fundamental sight is most positive – that doesn’t matter if everyone (the hedge funds, the western Central Banks) permanently blackjack the metals because the trend is obviously down being this practice the only way to make a little money yet…

… and if simultaneously the new highflyers, being the stocks and the stock markets, are pushed with cheap money from us tax payers, if they are injected, as it were state sanctified, tapered off – the small gold and silver investor should suspend or keep back physical buying, now and then proceeding to the short-side in the precious-metal trading till both metals will have finished their current corrections in the longterm mega bull-market.

I haven’t given very, very profound insight into the metals any more for a long time. Like many other traders, during the last quarter or so I have clearly been focused to the running stock markets. Here, it’s much easier to make money than in a sideways gold or silver market. I’m trying to catch up with the GUNNER24 Forecasts today, actually for gold, offering a short-, medium and long-term insight into the expected swings and a price projection to the expected correction low that is likely to be worked off until June 2014.

 

For all the gold traders I start with the most important horizontal supports and resistances in the monthly time frame. They are going to be extremely important far into 2014 keeping on exercising a strong magnet effect. Please, just go to the trouble of retracing the performance of the price at 1522, 1422, 1372, 1322 and 1272 during the last months also in the daily chart. You will make out that they are really extremely important horizontals. Beside the double arcs, in terms of strength, persistence, magnetic effect and power the horizontals are the most important signal generators in trading. The signals at horizontals have much more meaningfulness than for instance those at the diagonals or ordinary trend lines:

 

 

 

All the important horizontals below 1522 are directly derived from the first correction move after the all-time high. We measure this first correction move – in the GUNNER24 Terms the initial impulse – with the Blue Arc. By such a measure, generally the important future supports and resistances are defined. In the live case, the current gold correction, gold is sticking meticulously to the specification of the GUNNER24 Method. It is reacting absolutely in accordance with the textbook to the supports and resistances that exist exactly every 50$.

Use these horizontals that – depending – in the weekly, daily or intraday trading have been showing turning points or activating the next important horizontal if cracked. At the moment the 1322 (current November high 1327.50) is broken, the 1272 activated as the next target. The November 2013 low is at 1280.50. It was made on Friday. For November, the 1280 are on an extremely important Gann Angle Support that is backing on monthly closing base. It is allowed to be fallen short in November. The 1272 is the next lower important November support. From 1272 or closely beneath gold is expected to turn up again, newly targeting the 1322, cracking this one yet in November and reaching again the 1372 till January.

But if November closes below 1272, the 1122 will possibly get into reach very fast – till December 2013!

My prognosis that derives from the GUNNER24 Trading Method, the next important correction target in the big picture is this 2nd double arc. It is exercising the strongest magnetic effect now. Not before reaching this 2nd double arc gold is so to speak "allowed" to "be finished" with this correction.

The first double arc was unambiguously broken downwards = sell signal. Thus, reaching or touching the upper line of the 2nd double arc is almost compelling. With more than a 75% of probability the 2nd double arc is going to be reached in trend direction.

The August 2013 highs were at 1430$. With the August candle a test of the first double arc took place that resulted extremely negative. Gold rebounded from the first double arc now being in the move that is targeting the 2nd double arc. Only if gold achieves a monthly close above the first double arc – in fact till January 2014 – , the June 2013 low will be to be classified as the final correction low.

The 1272, important for November, is to be evaluated as important as the 1522 that gave support for 20 months after all. And it is to be assessed as important as the 1322 the market has been oscillating around for as many as 8 months. At the 1272 – to be more precise at 1272-1269 – there is a quadruple combined weekly and monthly Gann Magnet.

 

Let’s go now into the relevant weekly GUNNER24 Setups – at first the 5 candle down whose starting point is at the October 2012 highs. It is catching the current lows super visibly:  

 

 

In the weekly chart the 4th double arc was temporally re-conquered on closing base in August 2013 after the 5th double arc visualized the end of the tough downmove from the October 2012 highs. At the 5th, with the June 2013 lows a new upmove on weekly base starts, even though it is pretty weak and powerless.

We are shown by all that stuff that the June 2013 lows, the first test at the 5th double arc, may be very sustainable, at least in the medium term. The second test at the 5th by the middle of October 2013 was successful as well. Gold rebounded there from the 5th again thus marking a higher weekly low, climbing on a lower weekly high the week before last and being now supposed to target the 5th double arc again now.

The third test of the 5th is likely to be on the agenda for next week. On Friday already gold touched down to an extremely important Support Gann Angle marking there at 1280.50 the weekly low. From the 1280.50 it went up to the 1289 close. That one is beneath the 1291 horizontal support. It’s a sell signal on weekly base that is at least activating the 1277 for next week. But I think that the market wants to see the upper line of the 5th again. There, the important Support Gann Angle intersects the upper line of the 5th at 1269 next week.

 

So, the strongest down Gann Magnet in this setup is at 1269.

 

 

Also in the current weekly 5 candle up that is applied at the June 2013, a lot is pointing to the 1269 being reached. Last week was really not good for gold. In this setup is clearly to be seen how much porcelain was shattered with last week. This setup is showing us that last week produced a triple weekly sell signal. A) The Blue Arc was given up. B) The combined daily and monthly horizontal support at 1304 was cracked. And C) Even the 1*1 Gann Angle on weekly base was fallen below. Gold is now in the bearish half of this setup. Short will be trendy until the next important weekly support will be worked off and/or the 1*1 on weekly closing base will be re-conquered. This close is the "official" sign for us that the current downswing has come to an end being newly targeted the first double arc in trend direction.

The next important support is at the Support Gann Angle that is confirmed already. It was reached to a T with the October lows. This Support Gann Angle passes at 1269 for next week. It’s another confirmation that between 1272 and 1269 there is a super strong Gann Magnet that wants to be reached.

 

Here’s again the 1269 magnet in the weekly time frame, putting both relevant weekly setups one above the other. There are many perhaps confusing impressions, but it becomes clear where the main attraction passes:

 

 

Conclusion: In the weekly time frame the 1269 is a triple Gann Magnet. In addition, at 1272 there is the important monthly support after all. Technically gold will have to turn at 1272-1269 starting from there the C wave – analyzed here and here - up to about 1380 till the middle of January. Not before the renewed reaching of the first double arc in the weekly 5 candle up setup the next hefty sell wave till at least down to 1122 should go off.

If gold however closes below the 1269 next few weeks that would mean the first weekly close underneath the upper line of the 5th. It’s an arbiter for the 5th double arc to fall in the weekly 5 candle down setup with this down swing finally being meant to be strived for the 1172-1169 (combined weekly and monthly target) as the next combined weekly and monthly down target.

Admittedly the 1172-1169 cannot be more than a marginal support. Maybe at most 3-5 days is the time this area is supposed to persist since – as ascertained above – the June 2013 low (1179.40) is a matter of a strong low and in case it falls, an enormous down-energy would be released. It would be a real bang…

Please have a look at the entrance chart again. Above in the monthly 4 candle you see a Support Gann Angle coming from the left. It’s a very long-term and very important Gann Angle, the 1*2 Gann Angle. It starts at the absolute bear-market low of the year 1999. The 1999 low in gold was marked in the month of July at 253.50$.

 

To gain some new impressions or recognitions I’ve reflected the following: For me it’s just a matter of classifying this June 2013 low at 1179.40$ the right way, to understand better to assess its importance. The following has come to light:

 

 

I apply an up setup at the 07/1999 bear-market low supposing that from this low to the all-time high of the year 2011 a monster cycle came to an end. It’s something "important", perhaps a mega GUNNER24 Up Setup, possibly even the entire gold bull-run. So I trace the setup from the 1999 low to the all-time high. With the all-time high the setup has exhausted in terms of price.

The first realization is that the setup above and thus my train of thought are thoroughly valid. On the one hand this is shown by the price action at the altogether 5 double arcs of the GUNNER24 Up Setup. Mostly we see typical counter reactions in the uptrend as soon as the double arcs are reached. An exception is the performance at the 2nd double arc. There, the price rises within the lines of the 2nd. Not before the 2nd is taken upwards at the end of 2004 a little counter trend correction begins. But such a performance is not untypical either, it just happens less frequently.

What I will have to concentrate upon in order to get the confirmation for future market prognosis is – beside the performance at the double arcs or horizontal and time lines – the performance at the Gann Angles. In the setup above we can identify some important anchored Gann Angles gold clearly orients by since 1999. So:

It’s for sure that at the end of the setup in price – like above – also the 1*1 Gann Angle will be reached compellingly.

Together with the end of the setup in price the bounce from the 1*1 rings in the end of something important. According to the Gann Angle trading rules, the next important down target is thus the next important Gann Angle, in this case the important 1*2 Gann Angle to be reached. This target was clearly worked off with the June 2013 lows.

A precondition for the beginning of a new bull-market is given consequently. The 1*2 Gann Angle is a super-important and a super-strong angle support. Anyhow it springs from the absolute low of the last 35 years or so! It would be a logical end of this correction on monthly base. It is thoroughly possible that from June 2013 a new mega bull has started!! Besides, after reaching the 1*2 a first 3 candles long upmove is countable leading to what I called "Bear Resistance Angle" – red oval.

A monthly close above the "Bear Resistance Angle" will confirm the beginning of a new mega bull-market. But such a close within the next 3-4 months is not at all foreseeable for me. How will gold achieve to get above the 1460 for instance till January? The later gold starts to attack the "Bear Resistance Angle" again, the less likely to happen will be a soon close above this angle. At the moment it rather looks as if gold will want to test the 1999 1*2 Gann Angle again!!

A monthly close below the 1999 1*2 would lead to new monthly lows because in that case the next powerful monthly sell signal would arise. A monthly close below the 1*2 should let gold fall at least to the next lower Support Gann Angle. This move/swing is currently much more likely to happen than the "Bear Resistance Angle" to be taken till spring 2014. Thus, the next important stop point and the next logical turning point for the beginning of the new uptrend on monthly base is at the "Strong Support Angle" and 1055$-1072$ till June 2014!

Please mind on this possible final correction low target also the monthly 4 candle down setup shown at the beginning. The 1055$-1072$ are in this setup until near the lower line support of the 2nd double arc until June 2014.

 

But, since the "Bear Resistance Angle" and the 1*2 Gann Angle – at least optically – are showing the same energy at the moment, there is a chance that gold wants to remain between these two angles for months or even for years. It might bounce to and fro between both angles. That would rather correspond to an upwards directed sideways move comprising higher lows and higher highs in that case.

In these whipsaw markets of the last weeks that might confuse any trader thus leading mercilessly to burning the trading account the professional signals have got their special importance. You get them in the GUNNER24 Gold Trader!

 

You best register with our GUNNER24 Gold Trader now. That’s where we oversee the optimal entries and exits for you. Especially in the difficult market situations where many factors have to be considered the Gold Trader is backed by the additional GUNNER24 Signals based on the combined 1, 4 and 8 hour setups to catch the optimum entries and exits.

 

 

 

Be prepared!

 

Eduard Altmann